What does Each Way mean in horse racing?

An each-way (E/W) bet is really two equal-stake bets in one: a win part and a place part. A £10 each-way bet therefore costs £20. If the selection wins, both parts pay; if it only places (finishes within the offered positions, typically the top three to five depending on field size), the win part loses but the place part pays at a fraction of the win odds, usually 1/4 or 1/5. Worked example: back a horse at 8/1 each way, £10 E/W (£20 total), with place terms of 1/5 the odds for the first three. If it wins, the win part returns £80 profit and the place part pays 1/5 of 8/1 (that is 8/5, or 1.6) for £16 profit — £96 profit in all. If it merely places third, the win part loses £10 but the place part still returns £16 profit, leaving you £6 ahead on the £20 staked. Finish out of the places and the full £20 is lost. Each-way betting is most popular in horse racing and golf, where large fields make outright victory unlikely but a placed finish common. It matters most when place terms are generous or enhanced with extra places. A common mistake is forgetting that the outlay is double the unit stake, or assuming the place fraction applies to the whole bet. Compare with Ante-Post betting, the Field, and standard win-only markets.